Forum: Low-interest loans available to keep college affordable

Monday

Dec 29, 2008 at 12:01 AMDec 29, 2008 at 9:53 PM

College students across the nation are spending their holidays wondering if there will be a spring semester. The credit crunch, coupled with soaring tuition and textbook costs, has forced students to question the affordability of the upcoming semester, with some, sadly, deciding to withdraw from classes.

College students across the nation are spending their holidays wondering if there will be a spring semester. The credit crunch, coupled with soaring tuition and textbook costs, has forced students to question the affordability of the upcoming semester, with some, sadly, deciding to withdraw from classes.

The crisis was compounded by changes in federal policy that made it more difficult for students to find reasonable loans. But thanks to Citizens Equity First Credit Union of Peoria and seven other credit unions, Illinois students can enjoy their holidays knowing that if they're a little short in paying for the 2009 spring semester, the state of Illinois can help.

Thanks to an unusual deal signed recently by eight credit unions and the Illinois Student Assistance Commission (ISAC), $40.5 million in low-interest loans will be available to Illinois students for the upcoming semester. These federal Stafford loans have a 6 percent to 6.8 percent interest rate and offer consumer-friendly borrower benefits. Compare that to interest on a private student loan, which can be as high as 18 percent, with borrower benefits rare.

Students can apply for one of these loans online through ISAC's lending arm, the Illinois Designated Account Purchase Program (IDAPP), by clicking http://www.idapp.com/. Created 30 years ago by the Illinois General Assembly as a not-for-profit lender to students, IDAPP has no stockholders, so it continuously reinvests in Illinois families. The $40.5 million credit union package makes our mission - to make college affordable - much easier.

In the spirit of the season, these credit unions helped their neighbors in time of need. We salute them.